September 2018 Release of our petition to have the Reserve Bank issue our money along with an opinion piece.

June Press release on the swiss referendum. Despite the campaign of confusion and fear run by opponents, 25% voted for the Sovereign Money Initiative.

April The AustralianRoyal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry is coming up with some serious wrongdoing by the banks and financial institutions

May 2017 Positive Money New Zealand issued a press release seeking clarity from the Reserve Bank on how our money is created. They still refer to intermediation by the banks, which is not how our banking system works.

5th November 2016 An article in The Guardian newspaper in England argued that abolishing debt-based currency holds the secret to getting our system off its addiction to growth.

5th September 2016 KPMG released a report, commissioned by the Prime Minister of Iceland, titled "Money Issuance" The report looked at money created by the Government.

28 March 2016 Bryan Gould agreed to be our Patron. Bryan is a respected commentator on economic matters, an author, academic and Companion of the New Zealand Order of Merit.

14 October 2015 The Finance Commission of the Dutch parliament discussed monetary reform.

22 November. The British parliament debated money creation last week, for the first time in 170 years. There was cross-party support for a proposal to set up a monetary commission

23 September. A new generation of young people, dubbed ''property orphans'' may be destined to be renters for life.

17 September. The Bank of International Settlements (BIS), the bank used by central banks, confirmed New Zealand houses are among the most "unaffordable" in the world compared to people's incomes.

25th April 2014 "Strip private banks of their power to create money": says the Financial Times' chief economics commentator Martin Wolf, who endorses Positive Money's proposals for reform

15th March 2014 - In a historic move The Bank of England quarterly bulletin explains how money is created. Whenever a bank makes a loan, it creates a deposit in the borrower's bank account, thereby creating new money. The bank says that this differs from the story found in some economics textbooks.

16th August 2013. The retiring head of the Financial Markets Authority apologised for the mistakes made saying "You were let down".


Napoleon"When a government is dependent upon bankers for money, they and not the leaders of the government control the situation, since the hand that gives is above the hand that takes… Money has no motherland; financiers are without patriotism and without decency; their sole object is gain.”

Napoleon Bonaparte, Emperor of France, 1815

Campaign featured on prime time TV (7min)

A simple solution from a 12 year old

TVNZ 7 Sharp Video link

Is Money at the root of our big economic and social problems?

IMF working paper explained (35 min)

Following are links to podcasts of interviews on National Radio:

  • with economist and former currency trader Raf Manji on 12th November 2011. Download Ogg vorbis or MP3. 30 minutes

What's all the fuss about?

"Of all the many ways of organising banking, the worst is the one we have today" Sir Mervyn King, former Governor of the Bank of England.

Speech on 25 October 2010 titled "Banking: From Bagehot to Basel, and Back Again" - page 18.

The numbers in your bank account were created out of thin air by Australian banks (and to a lesser extent Kiwibank), not by the NZ government. Hard to believe? Ask Martin Wolf from the Financial Times - as Britain operates under the same system:

This money creation process by the banks creates distortions in our economy and is themain contributor to rising house prices. We propose that the Reserve Bank issues our money supply, rather that private banks.

A Working Paper by the IMF titled The Chicago Plan Revisited - released in August 2012 provides a good background on the current system and on page 5 describes banks being able to generate their own funding as "an extraordinary privilege that is not enjoyed by any other type of business".

The IMF Working Paper endorses the recommendations from the Chicago plan and our campaign and our solution is based on the Chicago plan.

97% Owned

The one hour You Tube documentary reveals how money is at the root of our current social and economic crisis.

"How does it happen?

In 1844 the British Government made it illegal for anyone to print their own bank notes.

Under New Zealand law the Treasury is the only issuer of notes and coins. But these laws haven't been updated to account for the fact that almost all money now is electronic.

Because of this loophole, banks worldwide now have the power to create money, effectively out of nothing.

Why Should I Worry?

The impact of increasing debt levels may be lost on a lot of people. Follow this link to find out how it affects you.

What should we do?

We need to move from a debt-based financial system (money creation by private banks) where virtually all of our money supply (98%) is borrowed into existence and bears interest, to one of Sovereign Money, issued debt-free by the Reserve Bank. Money creation by private banks requires permanent growth in the economy which is not possible in a world of finite resources.

Herman Daly, former Senior Economist at the World Bank, endorses Sovereign Money during an interview for the documentary: Critical Mass.

Read more about the problem

Read more about the solution

Who creates money now?

Under the current system the power to create money in New Zealand belongs to Australian banks: Westpac , ANZ National , ASB (owned by the Commonwealth Bank of Australia), and the BNZ (owned by the National Australia Bank Ltd) who have a 92% share of the New Zealand banking market.

The three domestic-owned banks are relatively small as Kiwibank has a market share of 3.7 per cent, TSB Bank 1.3 per cent and SBS Bank just 0.8 per cent.

The TSB, The SBS Bank, the Co operative bank (formerly the PSIS) also create money in the act of lending whereas Credit Unions only loan out the money they have on deposit.

The numbers in your bank account were created by Australian banks (and to a lesser extent Kiwibank), not by the NZ government.

How does money get into the economy?

The Bank of England quarterly bulletin (March 2014) explains how money is created. Whenever a bank makes a loan, it creates a deposit in the borrower's bank account, thereby creating new money. The bank says that this differs from the story found in some economics textbooks.

This means that nearly every dollar in the economy today was created when somebody went into debt. All the money that we need to trade, to buy food, and to run businesses, must be borrowed from the profit-seeking banking sector, at a huge cost to us, and a massive benefit to them.

Refer to the four minute 15 sec clip from our sister campaign in England "Positive Money UK" on "A simple solution to the debt crisis".

How much benefit do banks get from creating money?

In 2015 registered banks in New Zealand made a profit of $5.17 billion which is $1,100 profit for every man, woman and child in New Zealand.

Approximately 95% of the banks' profits leave New Zealand for Australia and beyond. This is a huge drain on our economy.

In 2008 registered banks in New Zealand made $3.26 billion in profit while the combined profit of the remainder of the NZX 50 back then (less the banks listed on the NZX 50) made 2.89 billion. (source: NZMEA - 2008 figures)

How much of a cost do we pay?

This system works great for the banks, but not so well for us.

When Fonterra has a good year up to $1 billion above the expected payout is injected into the economy and New Zealand has a good year. Imagine if year on year $3 billion was injected into the economy. That is one of the lost opportunities for New Zealand which will be remedied with the proposed system.

It's the reason why:

  • The average NZ adult owes $97,000 (including mortgages) almost 200% of the average salary
  • 16.5% of the average family's income ($75,000 based on two incomes) will be spent on interest on this debt.
  • Government debt now adds up to almost $12,500 for each adult in NZ, costing every two adult household approximately $1,600 in interest each year.
  • In 1980, the average cost of a house was roughly 2.5 times the average household income. In 2007, a house cost roughly 6 times the average household income.

It's the major (but hidden) contributor to problems like poverty, debt, environmental breakdown, economic instability and other issues.

We have a simple solution to these problems - just fix the way banking works and we fix money, and remove some of the root causes of many other social and economic problems.




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